TY - BOOK ID - 84542614 TI - Monetary Policy Under EMU : Differences in the Transmission Mechanism? AU - Clements, Benedict. AU - Kontolemis, Zenon. AU - Levy, Joaquim. PY - 2001 SN - 1462383238 1452792623 1281601985 1451898223 9786613782670 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Foreign Exchange KW - Inflation KW - Macroeconomics KW - Money and Monetary Policy KW - Business Fluctuations KW - Cycles KW - Prices, Business Fluctuations, and Cycles: Forecasting and Simulation KW - Monetary Policy, Central Banking, and the Supply of Money and Credit: General KW - International Economic Order and Integration KW - Monetary Policy KW - Price Level KW - Deflation KW - Currency KW - Foreign exchange KW - Monetary economics KW - Exchange rates KW - Credit KW - Monetary transmission mechanism KW - Consumer price indexes KW - Money KW - Monetary policy KW - Prices KW - Price indexes KW - France UR - https://www.unicat.be/uniCat?func=search&query=sysid:84542614 AB - This study identifies differences in the monetary policy transmission mechanism across the countries in the euro area. It is argued that part of the differences in the response of economic activity to monetary policy during the pre-EMU period, found in other studies, reflected differences in monetary policy reaction functions, rather than different transmission mechanisms. In light of this, the paper constructs an empirical model on the basis of common reaction functions. The results confirm that even when a common monetary policy is implemented, its effects on economic activity are likely to differ across EMU countries. The paper also constructs an aggregate measure of the effect of monetary policy on prices and output. Finally, the paper examines the relative strength of the credit, exchange rate, and interest rate channels of monetary transmission in EMU countries. ER -